The Shivchei HaBaal Shem Tov relates that once Rav Yaakov Yosef became a follower of the Baal Shem Tov, he gave away all his money as tzedakah out of fear that it was somehow tainted, as perhaps he’d earned it undeservedly, leaving himself destitute. He studied all day wrapped in a tallis and crowned with tefillin. Before eating his meals, he’d study seven pages of Gemara. During the meal, between courses, his mouth never ceased reviewing his learning by heart. After the meal, he took a quick nap and when he arose he once again donned tefillin, in which he studied Torah until Minchah. He studied much at night as well; no night passed by without him rising at chatzos, even on Shabbos and Yom Tov. He was diligently involved with raising funds to redeem captives and distribute tzedakah, although he himself lived in privation and hardship. His tefillos and acts of kedushah were so intense that he trembled as his very flesh crawled with fear and awe of Hashem!
When it became known that Rav Yaakov Yosef had become a follower of chassidus and the Baal Shem, the local misnagdim ran him out of town, leaving him no choice but to spend Shabbos in a neighboring village. Around 5508 (1747), he was appointed as Rav of Rashkov and a few years later, around 5512 (1751), of Nemirov, where he served for a longer time and spread chassidus openly.
Rav Yaakov Yosef continued to consult with the Baal Shem on all matters, and he was perhaps the closest disciple. However, when the Baal Shem Tov passed away in 5520 (1760), it was Rav Dov Ber, the Mezritcher Maggid, who was appointed successor, as Rav Yaakov Yosef felt incapable of leading the fledgling movement. He recognized the Maggid’s authority and is reported as saying: “After the Baal Shem Tov passed away, the Shechina packed her bags, left Mezhibuzh and settled in Mezritch.”
Likewise, the Maggid had a fondness for and appreciated Rav Yaakov Yosef, testifying: “He merited the revelation of Eliyahu Hanavi and other great spiritual achievements.” It is generally accepted that Rav Yaakov Yosef conducted himself as a rebbe, holding a tisch and accepting petitions to daven for the sick and other requests.
After the hub of the chassidic movement moved to Volhynia, Rav Yaakov Yosef, desiring to stay close to that center, moved as well, relocating to serve as Rav of Polnoy in 5530 (1769).
